TheÂ GBP/USD currency pair today retreated from its overnight rally after encountering resistance just before theÂ crucial 1.3500 psychological level. TheÂ currency pair was onÂ anÂ uptrend from theÂ early European session before reversing inÂ theÂ mid-European session following testimonies byÂ Bank ofÂ England policymakers before theÂ UK Parliament’s Treasury Select Committee.
TheÂ GBP/USD currency pair today declined from aÂ high ofÂ 1.3492 toÂ aÂ low ofÂ 1.3412 losing about 80 points.
TheÂ currency pair’s earlier rally was mainly fueled byÂ profit-taking investors who were selling theÂ US dollar following its recent rally. TheÂ currency pair’s rally was also supported byÂ theÂ release ofÂ theÂ UK public sector finances report forÂ April byÂ theÂ Office forÂ National Statistics. Public sector net borrowing came inÂ atÂ Â£6.23 billion versus theÂ expected Â£7.1 billion. TheÂ testimonies given byÂ theÂ BoE’s Monetary Policy Committee members before theÂ UK Parliament contributed toÂ theÂ pair’s weakness. TheÂ dovish comments byÂ BoE Governor Mark Carney had aÂ slightly negative impact onÂ theÂ currency pair.
Fears pertaining toÂ theÂ Brexit process also put aÂ damper onÂ theÂ pound asÂ talks resumed between theÂ UK andÂ EU negotiators. TheÂ CBI trends total orders forÂ May also disappointed byÂ coming inÂ atÂ -3 versus theÂ expected +2. TheÂ speech byÂ theÂ BoE’s Gertjan Vlieghe before Parliament during his reappointment hearing had minimal impact onÂ theÂ currency pair.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s UK CPI data, andÂ US Markit Manufacturing andÂ Services PMIs.
TheÂ GBP/USD currency pair was trading atÂ 1.3439 asÂ atÂ 16:16 GMT having declined from aÂ high ofÂ 1.3492. TheÂ GBP/JPY currency pair was trading atÂ 149.10 having dropped from aÂ high ofÂ 149.73.
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